In recent weeks, global markets have experienced varied movements, with the S&P 500 Index seeing gains driven by utilities and real estate sectors, while energy stocks faced pullbacks due to easing geopolitical tensions. Meanwhile, consumer spending in the U.S. has shown strength despite a dip in industrial output, highlighting a complex economic landscape that investors must navigate carefully. In such an environment, identifying growth companies with high insider ownership can be particularly appealing as they often demonstrate strong alignment between management and shareholder interests. This article explores three such companies that have achieved notable revenue growth of 28%, offering insights into their potential resilience and attractiveness amidst current market conditions.
|
Name |
Insider Ownership |
Earnings Growth |
|
Lavvi Empreendimentos Imobiliários (BOVESPA:LAVV3) |
11.9% |
21.1% |
|
Archean Chemical Industries (NSEI:ACI) |
22.9% |
34% |
|
Kirloskar Pneumatic (BSE:505283) |
30.3% |
30.1% |
|
People & Technology (KOSDAQ:A137400) |
16.4% |
35.6% |
|
Arctech Solar Holding (SHSE:688408) |
37.8% |
29.8% |
|
Seojin SystemLtd (KOSDAQ:A178320) |
30.7% |
49.1% |
|
Medley (TSE:4480) |
34% |
30.4% |
|
HANA Micron (KOSDAQ:A067310) |
18.3% |
105.8% |
|
Adveritas (ASX:AV1) |
21.2% |
144.2% |
|
Plenti Group (ASX:PLT) |
12.8% |
106.4% |
Here’s a peek at a few of the choices from the screener.
Simply Wall St Growth Rating: ★★★★★★
Overview: ShenZhen Woer Heat-Shrinkable Material Co., Ltd. operates in the production and sale of heat-shrinkable materials with a market capitalization of CN¥26.05 billion.
Operations: ShenZhen Woer Heat-Shrinkable Material Co., Ltd. generates its revenue primarily through the production and sale of heat-shrinkable materials.
Insider Ownership: 17.9%
Revenue Growth Forecast: 24.2% p.a.
ShenZhen Woer Heat-Shrinkable Material Ltd. demonstrates robust growth potential with its earnings expected to grow significantly at 28.7% annually, outpacing the CN market. The company reported strong half-year financials with sales reaching CNY 3.10 billion and net income at CNY 419.42 million, showcasing substantial year-over-year improvement. Despite a volatile share price and an unstable dividend track record, its price-to-earnings ratio suggests good relative value compared to peers and industry standards.
Simply Wall St Growth Rating: ★★★★☆☆
Overview: Shenzhen Yinghe Technology Co., Ltd specializes in the R&D, production, and sale of lithium-ion battery automation equipment in China and has a market cap of CN¥14.04 billion.
Operations: Shenzhen Yinghe Technology generates its revenue primarily from the research, development, production, and sale of automation equipment for lithium-ion batteries in China.
Insider Ownership: 19.3%
Revenue Growth Forecast: 18.3% p.a.
Shenzhen Yinghe Technology is positioned for strong growth, with earnings projected to increase by 28.44% annually, surpassing the broader CN market’s growth rate. Despite a decrease in recent sales and revenue, net income rose to CNY 338.12 million. The company’s price-to-earnings ratio of 23.6x indicates good value compared to the market average of 33.1x, though its share price has been volatile recently and dividends remain poorly covered by free cash flow.
Simply Wall St Growth Rating: ★★★★★☆
Overview: Changsha Jingjia Microelectronics Co., Ltd. operates in the semiconductor industry, focusing on the design and development of microelectronic products, with a market cap of approximately CN¥43.81 billion.
Operations: The company generates revenue primarily from the Computer, Communications, and Other Electronic Equipment Manufacturing segment, amounting to CN¥893.84 million.
Insider Ownership: 38.8%
Revenue Growth Forecast: 28.7% p.a.
Changsha Jingjia Microelectronics is experiencing robust growth, with earnings forecasted to rise by 33.36% annually, outpacing the CN market’s average. Recent earnings results show a positive turnaround, with net income reaching CNY 34.15 million from a previous loss. Despite lower profit margins compared to last year and volatile share prices recently, revenue growth is expected at 28.7% per year, significantly surpassing the market’s average rate of increase.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.The analysis only considers stock directly held by insiders. It does not include indirectly owned stock through other vehicles such as corporate and/or trust entities. All forecast revenue and earnings growth rates quoted are in terms of annualised (per annum) growth rates over 1-3 years.
Companies discussed in this article include SZSE:002130 SZSE:300457 and SZSE:300474.
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Read More: 3 Growth Companies With High Insider Ownership And 28% Revenue Growth